Franchise Killer: The 2008 remake was a total flop in sales, not only canning any possibility of the proposed Klonoa 2 Wii remake, but probably putting the entire game series on ice. Fortunately, a new webcomic for Klonoa was announced and released on September 2012.
Most fans will tell you that it wasn't the remake itself that killed the possible continuation of the series, it was more of the total lack of advertising in the west that caused the sales to suffer so much.
No Export for You: Moonlight Museum didn't make it out of Japan due to the WonderSwan not catching on; Beach Volleyball didn't make it to North America because Sony was trying to phase out the PS1 by 2002. Namco subsequently decided that North America hated Klonoa for some reason and refused to localize any other games until 2005.